Emyooga Savings and Credit Cooperative Organisations (SACCOs) in Lamwo district have been urged to strengthen loan recovery, improve financial accountability and equip members with business management skills to sustain government efforts to promote entrepreneurship and household incomes.

The call follows an external audit of the 34 Emyooga SACCOs in the district to assess their performance and determine their eligibility for additional government seed capital.

Kadugu Alex Powel, the Lamwo district commercial officer, identified poor loan management, inadequate recovery of loans issued to members and limited knowledge of basic accounting practices as some of the challenges affecting the SACCOs.

Kadugu said access to additional funding would depend on the performance of individual SACCOs, stressing that further seed capital would not be provided automatically.

He also raised concerns about SACCOs whose registration certificates were approaching expiry, urging their leaders to fulfil renewal requirements and maintain proper financial records.

According to Kadugu, the Emyooga programme started disbursing funds in Lamwo in 2021, with approximately sh1.52b channeled through the programme’s SACCOs.

The investment is intended to help organised groups of entrepreneurs access credit, expand their businesses and improve their livelihoods.

However, its sustainability depends on whether beneficiaries use the money productively and repay loans as agreed.

Oyella Joyce, an executive of Produce dealers, a group operating under an Emyooga SACCO in Palabek Gem sub-county, called for more sensitisation and empowerment of members before additional funds are disbursed.

She said strengthening members’ understanding of their responsibilities could help prevent mistakes that undermine the management of group funds.

Aciro Monica, another group executive, said members needed training in business management, loan repayment and financial accountability to improve their ability to manage borrowed money.

The concerns highlight the importance of equipping beneficiaries with practical skills to manage their enterprises, maintain records and plan for loan repayment.

Komakech William, the Lamwo resident district commissioner, said Emyooga was introduced to help Ugandans move from subsistence economic activities towards market-oriented production and participation in the money economy.

Launched in August 2019, the presidential initiative is implemented through the Microfinance Support Centre under the Ministry of Finance, Planning and Economic Development.

The programme provides seed capital to specialised, constituency-level SACCOs serving entrepreneurs in different trades and economic activities.

These include women entrepreneurs, youth, boda boda operators, market vendors, mechanics, tailors, produce dealers, journalists, artists and persons with disabilities, among others.

Through the SACCO model, members are expected to access credit, develop a savings culture and invest in income-generating activities.

Unlike a grant, Emyooga seed capital is intended to operate as a revolving fund. Money recovered from borrowers can be lent to other members, enabling more entrepreneurs to benefit from the initial government investment.

Low loan recovery, however, can limit the amount available for new borrowers and weaken the financial position of SACCOs.

Poor record-keeping can also make it difficult to track disbursements, establish outstanding balances and hold leaders accountable for the management of funds.

For the 34 SACCOs in Lamwo, improving performance will require responsible lending, proper bookkeeping, regular monitoring of borrowers and clear communication of loan repayment terms.

Members also need practical financial literacy training to help them separate business income from household expenditure, assess business costs and plan repayments in line with their earnings.

The LC5 chairperson, Oyet Sisto Ocen, said SACCO leaders can further strengthen accountability through regular financial reviews, transparent reporting to members and early intervention where borrowers experience repayment difficulties.

Ocen said, as the SACCOs seek additional government support, their ability to recover loans and manage funds transparently will remain central to their sustainability.

Ultimately, the success of Emyooga in Lamwo will depend not only on the amount of government money disbursed, but also on how effectively beneficiaries invest it, repay their loans and preserve the revolving fund for other entrepreneurs.